STATE OF NEW YORK
________________________________________________________________________
9035
IN ASSEMBLY
January 17, 2012
___________
Introduced by M. of A. REILLY -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to imposing sales tax at the
time of the sale of a gift certificate and exempting purchases made
with a gift certificate
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 6 of subdivision (b) of section 1101 of the tax
2 law, as amended by chapter 399 of the laws of 2009, is amended and a new
3 paragraph 39 is added to read as follows:
4 (6) Tangible personal property. Corporeal personal property of any
5 nature. However, except for purposes of the tax imposed by subdivision
6 (b) of section eleven hundred five of this article, such term shall not
7 include gas, electricity, refrigeration and steam. Such term shall also
8 include pre-written computer software, whether sold as part of a pack-
9 age, as a separate component, or otherwise, and regardless of the medium
10 by means of which such software is conveyed to a purchaser. Such term
11 shall also include newspapers and periodicals where the vendor ships or
12 delivers the entire edition or issue of the newspaper or periodical,
13 with or without the advertising included in the paper edition or issue,
14 but not including anything, other than advertising, not in such paper
15 edition or issue, to the purchaser by means of telephony or telegraphy
16 or other electronic media, but only where the amount of the sale price
17 to such purchaser of such newspaper or magazine or the subscription
18 price, in the case of a subscription to a newspaper or periodical,
19 including any charge by such vendor for shipping or delivery to the
20 purchaser, is separately stated to such purchaser. Such term shall also
21 include gift certificate, electronic gift card or magnetic gift card.
22 However, such term shall not include a modular home that is permanently
23 affixed to real property, provided that, if a modular home is to be
24 removed from the realty, whether as a whole or disassembled, it and its
25 component parts shall be tangible personal property whether it is to be
26 sold as a whole or as pieces.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09155-02-2
A. 9035 2
1 (39) Gift certificate. (i) A "gift certificate" shall mean a writing
2 identified as a gift certificate by a consumer for use by a customer,
3 whether or not redeemable for cash, and usable for its face amount in
4 lieu of cash for the exchange of goods or services supplied by the sell-
5 er. Gift certificates shall include electronic or magnetic cards with a
6 banked dollar value, a merchandise credit, a certificate where the
7 issuer has received payment for the full face value for the future
8 purchase or delivery of goods or services, and any other medium that
9 evidences the giving of consideration in exchange for the right to
10 redeem it for goods or services of at least an equal value. Pre-paid
11 calling arrangements, such as pre-paid phone cards, are not considered
12 gift certificates.
13 (ii) "Electronic gift card" or "magnetic gift card" shall mean a card
14 with a banked dollar value that may be redeemed for goods or services
15 whereby the dollar amount of the card is reduced accordingly.
16 § 2. Section 1115 of the tax law is amended by adding a new subdivi-
17 sion (hh) to read as follows:
18 (hh) (1) Purchases made with a gift certificate, electronic gift card
19 or magnetic gift card.
20 (2)(A) A "gift certificate" shall mean a writing identified as a gift
21 certificate by a consumer for use by a customer, whether or not redeema-
22 ble for cash, and usable for its face amount in lieu of cash for the
23 exchange of goods or service supplied by the seller. Gift certificates
24 shall include electronic or magnetic cards with a banked dollar value, a
25 merchandise credit, a certificate where the issuer has received payment
26 for the full face value for the future purchase or delivery of goods or
27 services, and any other medium that evidences the giving of consider-
28 ation in exchange for the right to redeem it for goods or services of at
29 least an equal value. For purposes of this subdivision, pre-paid calling
30 arrangements, such as pre-paid phone cards, are not considered gift
31 certificates.
32 (B) "Electronic gift card" or "magnetic gift card" shall mean a card
33 with a banked dollar value that may be redeemed for goods or services
34 whereby the dollar amount of the card is reduced accordingly.
35 § 3. This act shall take effect on the first day of a quarterly sales
36 tax period, as set forth in subdivision (b) of section 1136 of the tax
37 law, next succeeding the thirtieth day after it shall have become a law.
38 Provided, however that the commissioner of taxation and finance shall
39 take any action necessary for the timely implementation of this act on
40 or before the date on which it shall have become a law.
